Google Shopping -No More Free Now

Since last 10 years, Google Merchant Centre also called Google Base was a Free Channel for Merchants to showcase their Products and get additional sales from Google Product Search. Recently Google Announced that Google Shopping which was once free will be changed to paid by Product listing Ads via Google Adwords.

Sameer Samat, vice president of product management at Google Shopping commented after the changes were announced on Thursday.

First, we are starting to transition Google Product Search in the U.S. to a purely commercial model built on Product Listing Ads. This new product discovery experience will be called Google Shopping and the transition will be complete this fall. We believe that having a commercial relationship with merchants will encourage them to keep their product information fresh and up to date. Higher quality data whether its accurate prices, the latest offers or product availability should mean better shopping results for users, which in turn should create higher quality traffic for merchants.

Also to start smoothly Google is offering some incentives to the merchant apart from  few months to transition to this new model.
All merchants who create Product Listing Ads by August 15, 2012 will automatically receive a monthly credit for 10% of their total Product Listing Ad spend through the end of 2012.
Existing Google Product Search merchants can receive $100 AdWords credit toward Product Listing Ads if they fill out a form before August 15, 2012.

How Rankings will be determined with the New Model?

As per Google Ranking Algorithm will be same for Google Product listing Ads. i.e. your Bid and relevance factor.
Ranking in Google Shopping, when the full transition is complete this fall, will be based on a combination of relevance and bid price–just like Product Listing Ads today. This will give merchants greater control over where their products appear on Google Shopping. Over time they will also have the opportunity to market special offers such as 30% off all refracting telescopes.

How to Opt for Product Listing Ads?

Product listing ads use your existing Google Merchant Center (Merchant Center) product feed to decide how and where to show your ads, instead of keywords. For this you need to have a Google Merchant Centre account which should be linked to your Google Adwords Account.

To create Product Listing Ads, you can take help from a digital marketing agency that provides great online marketing services. But whether you are going to do it by yourself or get it done from an agency, following are  a few tips you should keep in mind while creating the Product Listing Ads:
1. Create Product Listing Ads for Keywords/Campaigns which are performing good.
2. Create different ad groups for each product/brand. Also you can add labels and groups to your product feed and then can map your products with label/group.
3. Use promotional messages in your ad copy to differentiate your ads like Free Delivery order before 3 PM for same day delivery etc
4. Define your group for same brand products or very close in terms of Price.